Scienjoy Holding Corporation Reports Fiscal Year 2024 Financial Results

Rhea-AI Summary

Scienjoy Holding (NASDAQ: SJ) reported its fiscal year 2024 financial results, showing significant improvements in profitability despite revenue challenges. Total revenues decreased to RMB1,363.4 million (US$186.8 million) from RMB1,464.9 million in 2023, with paying users declining to 494,652 from 557,692.

Key highlights include:

• Gross profit increased 27.4% to RMB245.4 million
• Income from operations surged 78.5% to RMB40.7 million
• Net income reached RMB26.7 million, a significant turnaround from RMB35.0 million loss in 2023
• Cash and cash equivalents grew to RMB252.5 million

The company expanded its global presence through its Dubai hub, targeting the Middle East and North Africa region. Management emphasized focus on AIGC technologies and Metaverse development while maintaining operational efficiency in a competitive market.

Positive

• Net income improved by RMB61.7 million YoY, turning from loss to profit
• Operating income increased 78.5% to RMB40.7 million
• Gross margin expanded to 18.0% from 13.2%
• Cash position strengthened by RMB47.1 million to RMB252.5 million
• Higher average revenue per paying user (ARPPU)

Negative

• Total revenues declined 6.9% YoY to RMB1,363.4 million
• Paying users decreased by 11.3% to 494,652
• Sales and marketing expenses surged 420.2%
• Research and development costs increased 20.4%
• One-time write-off of RMB30.0 million investment buyback receivable

Insights

Financial Analyst

Despite lower revenue, exceptional margin gains and profitability turnaround signal robust operational improvement and strategic resilience, outweighing user base decline.

Scienjoy reported a notable financial turnaround in fiscal year 2024. Although total revenue declined 6.9% year-over-year to RMB1,363.4 million, gross profit surged 27.4% and gross margin expanded from 13.2% to 18.0%. The standout metric is the 78.5% increase in income from operations (to RMB40.7 million), marking a shift from a net loss of RMB35.0 million to a net income of RMB26.7 million. Net income attributable to shareholders improved even more sharply, up RMB70.5 million from last year’s loss. Cash and equivalents increased to RMB252.5 million, strengthening the balance sheet. Notably, the company achieved these gains despite a decrease in paying users (494,652 vs. 557,692), demonstrating improved monetization (higher ARPPU) and operating leverage. Operating expense growth (20.5%) was largely driven by R&D and global marketing, reflecting investment in future capabilities and international expansion, particularly in Dubai and the MENA region. While provision for credit losses spiked (mostly due to a one-off write-off), the net effect did not prevent profitable results. Eliminating prior period losses from contingent consideration and investment write-downs further lifted earnings. Overall, the company’s ability to offset user declines with margin and efficiency gains signals strong management execution. These results are distinctly positive, as the company demonstrated resilience, sustainable profit generation and strategic flexibility in a challenging market.

Income from Operations up 78.5% Year Over Year
Net Income Increased by Approximately RMB60 million Year Over Year

BEIJING, April 22, 2025 /PRNewswire/ -- Scienjoy Holding Corporation ("Scienjoy", the "Company", or "we") (NASDAQ: SJ), an interactive entertainment leader in the Chinese market, today announced its financial results for the year ended December 31, 2024.

Fiscal Year 2024 Operating and Financial Summaries

• Total revenues decreased to RMB1,363.4 million (US$186.8 million) for the year ended December 31, 2024 from RMB1,464.9 million for the year ended December 31, 2023.
• Gross profit increased by 27.4% to RMB245.4 million (US$33.6 million) for the year ended December 31, 2024 from RMB192.7 million for the year ended December 31, 2023.
• Income from operations increased by 78.5% to RMB40.7 million (US$5.6 million) for the year ended December 31, 2024 from RMB22.8 million for the year ended December 31, 2023.
• Net income was RMB26.7 million (US$3.7 million) for the year ended December 31, 2024, increased by RMB61.7 million as compared to a net loss of RMB35.0 million for the year ended December 31, 2023.
• Net income attributable to the Company's shareholders was RMB39.7 million (US$5.4 million) for the year ended December 31, 2024, increased by RMB70.5 million, as compared with a net loss attributable to the Company's shareholders of RMB30.8 million for the year ended December 31, 2023.
• Adjusted net income attributable to the Company's shareholders was RMB50.3 million (US$6.9 million) for the year ended December 31, 2024, increased by RMB62.0 million as compared with a net loss adjusted attributable to the Company's shareholders of RMB11.7 million for the year ended December 31, 2023.
• As of December 31, 2024, the Company had cash and cash equivalent balance of RMB252.5 million (US$34.6 million), which represented an increase of RMB47.1 million from RMB205.5 million as of December 31, 2023.

Mr. Victor He, Chairman and Chief Executive Officer of Scienjoy, commented, "In 2024, Scienjoy delivered a strong performance amid intense competition and complex macroeconomic conditions. We are proud to report significant growth in both gross profit and income from operations—rising by 27.4% and 78.5% respectively. These results reflect our ability to efficiently convert high-quality paying users into profit growth in an increasingly mature and competitive market. We also made meaningful progress in our global expansion strategy. Leveraging our strategic regional hub in Dubai, we have launched targeted promotional initiatives in the Middle East and North Africa—a region brimming with potential and vitality. Meanwhile, our diversified product portfolio drives organic growth through the integration of online and offline innovations. We believe these consumer-centric innovations have strengthened our market position in smart lifestyle solutions and demonstrate our commitment to create long-term value for stakeholders.

Looking ahead, we are focusing on expanding global presence while investing further in cutting-edge Artificial Intelligence Generated Content, or AIGC, technologies and integrating them across our product ecosystem. We believe these efforts will pave the way for sustained growth and enduring success."

Mr. Denny Tang, Chief Financial Officer of Scienjoy, added, "We are pleased to share our strong financial performance for fiscal year 2024, which underscores the effectiveness of our strategic execution and disciplined financial management. Our income from operations significantly surged by 78.5% year-over-year, reflecting the success of our strategic initiatives and operational efficiencies. Additionally, we achieved a net income of RMB26.7 million in 2024 —an impressive turnaround from a net loss in 2023 by approximately RMB60 million. This significant improvement reflects the resilience of our business model and the dedication of our team in navigating a rapidly evolving market landscape. The fiscal year 2024 results validate our strategic focus and provide a solid foundation for growth. With an eye to the future, we remain steadfast in our commitment to innovation and growth, particularly in advancing our market position within the Metaverse field. Our continued investments in innovative technology, top-tier talent, and global expansion are set to unlock new opportunities and position us at the forefront of dynamic Metaverse industry. As we advance on our globalization journey, we remain confident that our strategic vision and operational excellence will continue to drive meaningful results in the years to come."

Fiscal Year 2024 Financial Results

Total revenues decreased to RMB1,363.4 million (US$186.8 million) for the year ended December 31, 2024 from RMB1,464.9 million for the year ended December 31, 2023, primarily caused by a decrease in paying users due to competitive landscape of China's mobile live streaming market. Total paying users were 494,652 for the year ended December 31, 2024, compared to 557,692 for the year ended December 31, 2023.

Cost of revenues decreased to RMB1,117.9 million (US$153.2 million) for the year ended December 31, 2024 from RMB1,272.1 million for the year ended December 31, 2023. The decrease was primarily attributable to a decrease of RMB123.7 million in the Company's revenue sharing fees and a decrease of RMB26.5 million in the Company's user acquisition costs due to the fact that the Company already had a stable market share. 

Gross profit increased by 27.4% to RMB245.4 million (US$33.6 million) for the year ended December 31, 2024 from RMB192.7 million for the year ended December 31, 2023. The gross margin increased to 18.0% for the year ended December 31, 2024 from 13.2% in the year ended December 31, 2023 due to higher average live streaming revenue per paying user ("ARPPU") during the year ended December 31, 2024, showing the Company's effectiveness in converting high-quality paying user to its profit growth.

Total operating expenses increased by 20.5% to RMB204.7 million (US$28.0 million) for the year ended December 31, 2024 from RMB169.9 million for the year ended December 31, 2023.

• Sales and marketing expenses increased by 420.2% to RMB7.0 million (US$1.0 million) for the year ended December 31, 2024 from RMB1.4 million for the year ended December 31, 2023, primarily attributable to sales and marketing activities in our new subsidiaries in Dubai. The Company is taking initiative in Dubai market, aiming at global expansion starting from the dynamic Middle East and North Africa ("MENA") region.
• General and administrative expenses increased by1.4% to RMB76.6 million (US$10.5 million) for the year ended December 31, 2024 from RMB75.6 million for the year ended December 31, 2023. The increase was primarily due to an increase of RMB5.9 million in employee salary and welfare, offset by a decrease of RMB2.5 million in office renovation expenses and a decrease of RMB2.4 million in share-based compensation.
• Research and development expenses increased by 20.4% to RMB90.5 million (US$12.4 million) for the year ended December 31, 2024 from RMB75.1 million for the year ended December 31, 2023, due to an increase of RMB14.7 million in technical service fee and an increase of RMB1.1 million in employee salary and welfare.
• Provision for credit losses increased by 71.2% to RMB30.6 million (US$4.2 million) for the year ended December 31, 2024 from RMB17.9 million for the year ended December 31, 2023, primary due to a one-time write-off of a RMB30.0 million investment buyback receivable.

Income from operations increased by 78.5% to RMB40.7 million (US$5.6 million) for the year ended December 31, 2024 from RMB22.8 million for the year ended December 31, 2023.

Change in fair value of contingent consideration was nil for the year ended December 31, 2024, as compared to a loss of RMB5.6 million for the year ended December 31, 2023. Change in fair value of contingent consideration is derived from earn out liabilities resulted from historical acquisitions. The fair value of the contingent consideration is re-measured at each reporting period, and the change in fair value is recognized as either income or expense.

Change in fair value of warrants liability was nil for the year ended December 31, 2024, as compared to a gain of RMB0.2 million for the year ended December 31, 2023. The fair value of the Company's warrants derivative liability assumed from the SPAC acquisition is re-measured to its fair value at the end of each reporting period, with the change being recorded as other expense or gain. In February 2024, the Company's warrants expired according to the terms of the warrant agreement.

Change in fair value of investment in marketable security was a gain of RMB6.1 million (US$0.8 million) for the year ended December 31, 2024, as compared to a loss of RMB9.0 million for the year ended December 31, 2023. The change was primarily attributable to the fair value changes in investments in a publicly traded company.

Investment loss decreased to RMB5.7 million (US$0.8 million) for the year ended December 31, 2024 as compared with an investment loss of RMB31.3 million for the year ended December 31, 2023. The investment loss was primarily attributable to share of unrealized loss in long-term investments.

Impairment of long-term investments decreased to RMB10.4 million (US$1.4 million) for the year ended December 31, 2024, from RMB11.8 million for the year ended December 31, 2023.

Net income was RMB26.7 million (US$3.7 million) for the year ended December 31 2024, increased by RMB61.7 million as compared to a net loss of RMB35.0 million for the year ended December 31, 2023. 

Net income attributable to the Company's shareholders was RMB39.7 million (US$5.4 million) for the year ended December 31, 2024, increased by RMB70.5 million as compared to a net loss attributable to the Company's shareholders of RMB30.8 million for the year ended December 31, 2023.

Adjusted net income attributable to the Company's shareholders was RMB50.3 million (US$6.9 million) for the year ended December 31, 2024, increased by RMB62.0 million as compared to a net loss adjusted attributable to the Company's shareholders of RMB11.7 million for the year ended December 31, 2023.

Basic and diluted net income attributable to the Company's shareholders per ordinary share was RMB0.96 (US$0.13) and RMB0.95 (US$0.13) for the year ended December 31, 2024. In comparison, basic and diluted net loss attributable to the Company's shareholders per ordinary share were both RMB0.76 for the year ended December 31, 2023.

Adjusted basic and diluted net income attributable to the Company's shareholders per ordinary share was RMB1.22 (US$0.17) and RMB1.21 (US$0.17) for the year ended December 31, 2024. In comparison, adjusted basic and diluted net loss attributable to the Company's shareholders per ordinary share were both RMB0.29 for the year ended December 31, 2023

As of December 31, 2024, the Company had cash and cash equivalent balance of RMB252.5 million (US$34.6 million), which represented an increased by of RMB47.1 million from RMB205.5 million as of December 31, 2023. 

About Scienjoy Holding Corporation

Scienjoy is a pioneering Nasdaq-listed interactive entertainment leader. Driven by the vision of shaping a metaverse lifestyle, Scienjoy leverages AI-powered technology to create immersive experiences that resonate with global audiences, fostering meaningful connections and redefining entertainment. For more information, please visit http://ir.scienjoy.com/.

Use of Non-GAAP Financial Measures

Adjusted net income is calculated as net income adjusted for change in fair value of contingent consideration, change in fair value of warrant liability and share based compensation. Adjusted basic and diluted net income per ordinary share is non-GAAP net income (loss) attributable to ordinary shareholders divided by weighted average number of ordinary shares used in the calculation of non-GAAP basic and diluted net income per ordinary share. The non-GAAP financial measures are presented to enhance investors' overall understanding of the Company's financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. Investors are encouraged to review the reconciliation of the historical non-GAAP financial measures to its most directly comparable GAAP financial measures. As non-GAAP financial measures have material limitations as analytical metrics and may not be calculated in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measures as a substitute for, or superior to, such metrics in accordance with US GAAP.

For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of Non-GAAP Results" near the end of this release.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB7.2993 to US$1.00, the noon buying rate in effect on December 31, 2024, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB amounts could have been, or could be, converted, realized or settled in U.S. dollars at that rate on December 31, 2024, or at any other rate.

Safe Harbor Statement

Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, are: the ability to manage growth; ability to identify and integrate other future acquisitions; ability to obtain additional financing in the future to fund capital expenditures; fluctuations in general economic and business conditions; costs or other factors adversely affecting our profitability; litigation involving patents, intellectual property, and other matters; potential changes in the legislative and regulatory environment; a pandemic or epidemic. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in the Company's filings with the Securities and Exchange Commission ("SEC") from time to time. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Such information speaks only as of the date of this release.

For investor and media inquiries, please contact:

Investor Relations Contacts

Denny Tang
Chief Financial Officer
Scienjoy Holding Corporation
+86-10-64428188
ir@scienjoy.com 

Ascent Investor Relations LLC

Tina Xiao
+1-646-932-7242
investors@ascent-ir.com 

 

 

CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except share and per share data or otherwise stated)
		As of December 31,
		2023				2024				2024
		RMB				RMB				US$
ASSETS
Current assets
Cash and cash equivalents			205,465				252,540				34,598
Accounts receivable, net			260,979				226,060				30,970
Prepaid expenses and other current assets			78,653				28,415				3,893
Amounts due from related parties			355
Investment in marketable security			31,525				37,629				5,155
Total current assets			576,977				544,644				74,616
Non-current assets
Property and equipment, net			2,193				1,981				271
Intangible assets, net			412,154				405,256				55,520
Goodwill			182,467				182,661				25,024
Long term investments			254,411				257,387				35,262
Long term deposits and other assets			726				906				124
Right-of-use assets-operating lease			12,157				4,845				664
Deferred tax assets			7,379				7,505				1,028
Total non-current assets			871,487				860,541				117,893
TOTAL ASSETS			1,448,464				1,405,185				192,509
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable			73,183				36,015				4,934
Accrued salary and employee benefits			14,763				22,346				3,061
Accrued expenses and other current liabilities			27,610				6,840				937
Income tax payable			13,005				11,284				1,546
Lease liabilities-operating lease -current			7,974				4,098				561
Deferred revenue			97,586				80,186				10,985
Total current liabilities			234,121				160,769				22,024
Non-current liabilities
Deferred tax liabilities			59,818				58,400				8,001
Lease liabilities-operating lease -non-current			4,798				700				96
Total non-current liabilities			64,616				59,100				8,097
TOTAL LIABILITIES			298,737				219,869				30,121
Commitments and contingencies
EQUITY
Ordinary share, no par value, unlimited Class A           ordinary shares and Class B ordinary shares           authorized, 38,113,879 Class A ordinary shares and           2,925,058 Class B ordinary shares issued and           outstanding as of December 31, 2023, respectively.           38,922,726 Class A ordinary shares and 2,925,058           Class B ordinary shares issued and outstanding as           of December 31, 2024, respectively.
Class A ordinary shares			423,623				444,162				60,850
Class B ordinary shares			23,896				23,896				3,274
Shares to be issued			30,777				20,817				2,852
Treasury stocks			(19,216)				(19,952)				(2,733)
Statutory reserves			44,698				50,705				6,947
Retained earnings			628,821				662,499				90,762
Accumulated other comprehensive income			17,965				16,967				2,324
Total shareholders' equity			1,150,564				1,199,094				164,276
Non-controlling interests			(837)				(13,778)				(1,888)
Total equity			1,149,727				1,185,316				162,388
TOTAL LIABILITIES AND EQUITY			1,448,464				1,405,185				192,509

 

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME
(All amounts in thousands, except share and per share data or otherwise stated)
		For the years ended December 31,
		2023				2024				2024
		RMB				RMB				US$
Live streaming - consumable virtual      items revenue			1,420,258				1,317,601				180,510
Live streaming - time based virtual item      revenue			25,004				24,935				3,416
Technical services and others			19,609				20,848				2,857
Total revenue			1,464,871				1,363,384				186,783
Cost of revenues			(1,272,145)				(1,117,942)				(153,157)
Gross profit			192,726				245,442				33,626
Sales and marketing expenses			(1,355)				(7,049)				(966)
General and administrative expenses			(75,582)				(76,629)				(10,498)
Research and development expenses			(75,116)				(90,461)				(12,393)
Provision for credit losses			(17,865)				(30,584)				(4,188)
Income from operations			22,808				40,719				5,581
Change in fair value of contingent      consideration			(5,624)				-				-
Change in fair value of warrant liabilities			170				-				-
Change in fair value of investment in      marketable security			(9,023)				6,103				836
Investments loss			(31,328)				(5,742)				(787)
Impairment of long-term investments			(11,800)				(10,425)				(1,428)
Interest income, net			2,739				3,211				440
Other income, net			7,449				1,609				220
Foreign exchange (loss) gain, net			(1,887)				3,805				521
Income (loss) before income taxes			(26,496)				39,280				5,383
Income tax expense			(8,480)				(12,597)				(1,726)
Net (loss) income			(34,976)				26,683				3,657
Less: net loss attributable to      noncontrolling interest			(4,188)				(13,002)				(1,781)
Net (loss) income attributable to the      Company's shareholders			(30,788)				39,685				5,438
Other comprehensive (loss) income:
Other comprehensive loss - foreign      currency translation adjustment			(105)				(998)				(137)
Comprehensive (loss) income			(35,081)				25,685				3,520
Less: comprehensive loss attributable      to non-controlling interests			(4,188)				(13,002)				(1,781)
Comprehensive (loss) income      attributable to the Company's      shareholders			(30,893)				38,687				5,301
Weighted average number of shares
Basic			40,649,414				41,367,946				41,367,946
Diluted			40,649,414				41,564,237				41,564,237
(Loss) earnings per share
Basic			(0.76)				0.96				0.13
Diluted			(0.76)				0.95				0.13

 

 

 

Reconciliations of Non-GAAP Results
(All amounts in thousands, except share and per share data or otherwise stated)
		For the years ended December 31,
		2023				2024				2024
		RMB				RMB				US$
Net (loss) income attributable to the Company's      shareholders			(30,788)				39,685				5,438
Less:
Change in fair value of contingent consideration			(5,624)				-				-
Change in fair value of warrants liability			170				-				-
Share based compensation			(13,637)				(10,579)				(1,449)
Adjusted net (loss) income attributable to the Company's      shareholders*			(11,697)				50,264				6,887
Adjusted net (loss) income per ordinary share
Basic			(0.29)				1.22				0.17
Diluted			(0.29)				1.21				0.17
"Adjusted net (loss) income attributable to the Company's shareholders" is defined as net (loss) income attributable to the Company's shareholders excluding change in fair value of contingent consideration, change in fair value of warrant liability and share based compensation. For more information, refer to "Use of Non-GAAP Financial Measures" and "Reconciliations of Non-GAAP Results" at the end of this press release.

 

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SOURCE Scienjoy Holding Corporation

FAQ

What caused Scienjoy (SJ) revenue decline in 2024?

The revenue decline was primarily due to decreased paying users (494,652 vs 557,692) resulting from intense competition in China's mobile live streaming market.

How much did Scienjoy (SJ) improve its net income in 2024?

Scienjoy turned a RMB35.0 million loss in 2023 into a RMB26.7 million profit in 2024, representing a RMB61.7 million improvement.

What is Scienjoy's (SJ) international expansion strategy?

Scienjoy is expanding globally through its Dubai hub, focusing on the Middle East and North Africa (MENA) region with targeted promotional initiatives.

How much cash does Scienjoy (SJ) have as of December 2024?

Scienjoy had RMB252.5 million (US$34.6 million) in cash and cash equivalents, up RMB47.1 million from December 2023.

What was Scienjoy's (SJ) gross margin improvement in 2024?

Gross margin increased to 18.0% in 2024 from 13.2% in 2023, driven by higher average live streaming revenue per paying user.